Applied Digital (APLD) Stock Is Surging Friday: What's Going On?

Shares of Applied Digital Corp (NASDAQ:APLD) are surging Friday morning following the release of strong first-quarter financial results and a significant expansion of its partnership with AI hyperscaler CoreWeave Inc (NASDAQ:CRWV). Here’s what investors need to know.

What To Know: For the fiscal first quarter ending August 31, Applied Digital reported an 84% year-over-year revenue increase to $64.2 million, substantially beating analyst expectations. The company posted an adjusted loss of 3 cents per share, an improvement over the anticipated 13 cent loss.

Fueling investor optimism is the expansion of a lease agreement with CoreWeave, which now covers the full 400-megawatt capacity at Applied Digital’s Polaris Forge 1 campus in North Dakota. This landmark deal is expected to generate approximately $11 billion in revenue over its 15-year term. To support its rapid growth, the company has also secured over $362.5 million in new financing, bolstering its cash position to $114.1 million.

Adding to the bullish sentiment, analysts at Needham maintained their Buy rating and nearly doubled their price target on the stock to $41 from $21.

Benzinga Edge Rankings: Underscoring the stock’s powerful upward movement, Benzinga Edge rankings show the stock has an exceptional Momentum score of 98.74 alongside a positive price trend across all timeframes.

APLD Price Action: Applied Digital shares were up 22.98% at $36.04 at the time of publication Friday, according to Benzinga Pro.

The stock is trading well above its 50-day ($18.44), 100-day ($14.27) and 200-day ($10.63) moving averages, suggesting a robust upward trend. Key support levels may be established around these moving averages, while resistance could be tested at psychological levels above the current price.

Read Also: IREN Stock Hits New 52-Week High: What’s Driving The Action?

How To Buy APLD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Applied Digital’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock